Daily Price Action
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Price Action Update: No Shortage of Pin Bars

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Hope everyone has enjoyed their weekend and is ready for a new trading week. Here are some updates from the setups that were covered in last week’s post.

EURNZD formed a nice bearish pin bar at resistance on Thursday, however the market nearly broke the high during Friday’s session. Typically when the market hovers around a key level like this it can indicate that a breakout is in the works. A retrace the day after a pin bar is normal (it’s my preferred way of entering a pin bar setup). But when a market closes like EURNZD did on Friday, it doesn’t inspire a lot of confidence for the bears.

Also keep in mind that price action since January has formed a terminal wedge. This wedge is coming off last year’s rally that saw an increase of 2,000 pips in less than 6 months – making it a bullish pattern. This setup could break either way at this point.

eurnzd daily chart

The same applies to the NZDCHF bullish pin bar. Everything about this pin bar was telling us that the market wanted to push higher. The price action witnessed on Friday was telling us that the market had other plans, closing lower on the day.

Both of these setups (EURNZD and NZDCHF) call for some New Zealand Dollar strength in order to play out, which has been hard to come by lately. That isn’t to say there won’t be follow through, but considering the way NZDUSD traded on Friday it does make it a less likely scenario.

nzdchf daily forex chart

The pin bar we covered on GBPJPY on the other hand played out beautifully on Friday, closing the day with a 50 pip gain from last week’s post.

As of Friday, the channel (blue trend lines) is still in tact. This week may see the pair retest the 171.23 level as resistance. It’s important to note that this level is a key horizontal level as well as channel resistance.

gbpjpy daily forex chart

Still watching and waiting for NZDUSD to retest  the .8520 key level. It’s very possible that the pair may not make it that far, in which case we’ll have to remain patient and wait for the next key level to come into play.

nzdusd 4 hour forex chart

Last but not least, GBPUSD faces a huge challenge this week. After breaking trend line support on May 27th, the pair has looked heavy and has been favored to the downside. The market was able to push higher on Friday, retesting the 1.6760 key level, this time as resistance.

A bearish pin bar at this level would make for an interesting setup. We’ll have to see how this level holds up throughout the week.

gbpusd daily forex chart

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